​​​​​​​​PPS Preservation Funds

The PPS Preservation Funds are pre-retirement products that reinvest your retirement capital with the aim of preserving these savings once you have left either a pension or provident fund.

You may transfer to a preservation fund from a pension or provident fund without paying tax at transfer, which means that you are able to delay your tax liability until retirement. Preserving the tax status of an investment in this way has the effect of maximising the tax-free lump sum available and therefore gives the potential to generate higher investment returns. Preservation funds are especially beneficial for individuals who have changed employment as a result of resignation or retrenchment or for individuals whose occupational retirement fund has been closed. Upon retiring from the PPS Preservation Pension Fund, a maximum of one third of your retirement proceeds may be taken as a cash lump sum, a portion of which is tax free (the first R500 000, provided that no previous withdrawals have been made). The remaining two thirds of your capital need to be utilised to purchase post-retirement income from a registered insurer. The PPS Preservation Provident Fund has no prescribed codicil relating to the purchase of an annuity. The full value of your retirement proceeds may thus be taken as a lump sum, of which the first R500 000 may be tax free.

Lump sum: R50 000 Recurring: Not applicable *Ad hoc: Only if fund origin is the same

*Additional permissible investments would specifically be surplus payments due to accruals from the transferring fund.

Transfers

You may transfer an existing preservation fund, depending on the source, to the PPS Preservation Pension or PPS Preservation Provident Fund. You may also transfer your investment from either of the PPS Preservation Funds to another registered preservation fund. This is known as a Section 14 transfer.

Switches

You may change your selection of underlying unit trusts as often as you choose without incurring a transaction fee. However, should an asset manager charge an initial upfront fee for investing into its unit trusts, this fee would be applied should you switch to those unit trusts.

Cessions

You may not cede your investment in the PPS Preservation Pension or PPS Preservation Provident Fund, or use it as security for debt.

Taxes

The growth on your PPS Preservation Pension or PPS Preservation Provident Fund does not attract capital gains tax or withholding tax on dividends. Interest,
foreign dividends and rental income are also currently untaxed.

Withdrawals

You may make one withdrawal up to the full value of the preservation fund before retirement. Where the source of the funds is the Government Employee Pension Fund, the withdrawals will be limited to one-third of the value. Currently R25 000 of this withdrawal is tax-free.

Regulation-28 compliance

The PPS Preservation Pension and PPS Preservation Provident Fund are required to comply with the Prudential Investment Guidelines of Regulation 28 of the Pension Funds Act and with Exchange Control legislation. As such, you are allowed maximum exposures of 75% of the investment amount to equity investments, 25% to property investments, 30% to international investments and 10% to African investments. This is applied on an individual member level as well as on an overall Fund level.

Board of Trustees

The PPS Preservation Pension and PPS Preservation Provident Funds are governed by an independent Board of Trustees with extensive experience and understanding of retirement fund issues. The Board comprises a Chairman, a professional Principal Officer and several Trustees.

Death benefits

Upon death, the proceeds of your PPS Preservation Pension or PPS Preservation Provident Fund may be used to purchase an annuity to provide an income for your dependants and/or beneficiaries*. Such income would be taxed at the marginal tax rate of the recipient(s). Your beneficiaries or dependants would also have the option of commuting the proceeds to a cash lump sum. In this instance, the lump sum would be taxed according to the tax tables at your average tax rate.

*Please note that the allocation to the beneficiaries is at the discretion of the Trustees, based on the Provision of section 37C of the Pension Funds Act, No. 24 of 1956. Your nomination will serve to assist the Trustees in making these decisions, but may not be binding on them.

Once you have selected your solution, you're then able to structure your solution using the carefully constructed or selected funds we have available to you.

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​PPS Funds

Select the option suitable to you

We build diversified funds across managers and strategies to achieve consistent performance over time. Our experienced investment team manages the asset allocation and manager combination of each solution. You just need to select the appropriate multi-managed fund.

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Other Funds

You select from managers on our platform

You choose the appropriate combination of funds from our pre-approved list to construct the solution you want. Our online functionality allows you to manage your overall asset allocation and change the combination of funds at any time.

Depending on your preference, there are a few ways you are able to invest with us.

​Invest via an adviser

We always recommend seeking the advice of an experienced and qualified financial adviser to help you set financial goals, save sufficiently for these goals and stick to your investment plans. Should wish to find a PPS Investments accredited adviser, leave your details here and someone will contact you shortly.

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Invest Now

With the InvestNow functionality, you're able to place new investments, top up existing investments, switch or make withdrawals. And in-app notifications keep you updated on the progress of your transactions. A nifty retirement calculator and access to key documents like tax certificates are added benefits. Click here to use this functionality. ​

Printing and completing an application form

You're also welcome to print the application form and send it to our Validations Team at admin@ppsinvestments.co.za. For any further support, contact our dedicated client service teams are available between 8:00 and 17:00, Mondays to Fridays at 0860 468 777 or clientservices@ppsinvestments.co.za to assist you with your transaction.

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We at PPS Investments are proud of our unique and unmatched business model of “mutuality” in South Africa. Our financial strength and exceptional growth trends inspire a sense of confidence in PPS Investments.